I just ran across an interesting new handheld console called pandora, it "runs Linux on a next-generation ARM SoC with integrated OpenGL 2.0 compliant graphics processor." which basically means anyone can create a game for it because it's completely open standards. A few interesting tidbits:

In terms of processing power, its designers claim Pandora will compare to Nintendo's GameCube [...] Since few games are available for native Linux, GP2X supports a variety of game emulators, including MAME, SNES, Genesis, and PC Engine. This lets users enjoy a variety of game titles originally written for other platforms. Pandora will initially offer full-speed PlayStation 1 emulation, says the group, with N64 emulation planned in a later release.[...] OpenGL ES 2.0 enables 3D graphics processing at several million polygons per second, says OpenPandora. The low-power PowerVR SGX is designed specifically for processing 3D graphics and video on wireless-equipped mobile devices. Built around a tile-based, scalable, multi-threaded processing engine, the processor is touted as being able to encode and decode video at DVD resolutions.[...] The Pandora is loaded with "Open2X-style" Linux firmware, says OpenPandora, but notes that Debian ARM packages will "probably" be accepted [...] The Pandora can run X11 with a window manager and desktop environment, says OpenPandora, and it can also run most modern Linux programs, including Firefox 3.0.[...]Here are the specs for the Pandora: